d. when the entity's right to receive payment is established. 2. Entity A enters into a long-term contract to provide services. The outcome of the transaction can be estimated reliably and the progress on the contract can be measured with sufficient reliability. According to the PPSAS, how should Entity A recognize revenue from the contract? a. On a straight line basis over the contract term. b. By reference to the stage of completion of the contract at the reporting date. Full recognition of contract price upon completion of the contract. d. Only to the extent of costs that are expected to be recovered. 3. According to the GAM for NGAS, interest revenue is recognized on a time proportion basis using the effective interest a. method. b. on a straight line basis. in accordance with the substance of the relevant loan C. agreement. is
d. when the entity's right to receive payment is established. 2. Entity A enters into a long-term contract to provide services. The outcome of the transaction can be estimated reliably and the progress on the contract can be measured with sufficient reliability. According to the PPSAS, how should Entity A recognize revenue from the contract? a. On a straight line basis over the contract term. b. By reference to the stage of completion of the contract at the reporting date. Full recognition of contract price upon completion of the contract. d. Only to the extent of costs that are expected to be recovered. 3. According to the GAM for NGAS, interest revenue is recognized on a time proportion basis using the effective interest a. method. b. on a straight line basis. in accordance with the substance of the relevant loan C. agreement. is
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter9: Auditing The Revenue Cycle
Section: Chapter Questions
Problem 19MCQ
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